Congress questions SEBI's enforcement on FPI disclosure norms post-Adani controversy

The Congress has raised concerns about SEBI's enforcement of the deadline for Foreign Portfolio Investors (FPIs) to disclose their beneficial owners, particularly those implicated in the Adani controversy. Congress General Secretary Jairam Ramesh questioned whether the FPIs involved in the so-called "Modani mega-scam" have complied with the September 9 deadline, which was set by SEBI to enhance transparency in the equity market.

In a post on social media platform X, Ramesh said that this issue had been flagged earlier when it was revealed that two Mauritius-based FPIs, linked to the Adani matter, sought relief from the Securities Appellate Tribunal to avoid compliance with these norms. He posed several questions to SEBI, including whether all FPIs had disclosed their ultimate beneficial owners and what actions SEBI had taken against non-compliant entities.



The Congress leader also questioned why it took SEBI 18 months to enforce the disclosure norm, despite a Supreme Court ruling mandating an investigation into FPI violations within two months. Ramesh suggested that this delay might have allowed implicated funds to divest from stocks, undermining the intent of the new regulations.

These concerns follow reports that SEBI’s investigation into the Adani Group's alleged regulatory breaches remains unresolved. The Congress party has consistently criticized SEBI's handling of the case, accusing the regulator of failing to address serious allegations of financial misconduct against the Adani Group.

SEBI Chairperson Madhabi Buch and her husband have denied recent allegations of their involvement in offshore funds linked to the Adani scandal, calling them baseless. The Adani Group has also refuted these allegations, maintaining that they comply with all legal and regulatory requirements.